ECB warns of “hazardous contagion”; Banks face “considerable” loan losses in 2010/ 2011 with additional €195bn in writedowns
Jun 1st, 2010 | By Finfacts Ireland Business & Finance Portal | Category: News worldwide
The European Central Bank (ECB) warned on Monday that sovereign credit risk among the industrialised economies in the early months of 2010 opened up a number of "hazardous contagion" channels. It also said Eurozone banks will suffer "considerable" loan losses in 2010 and 2011, which could amount to an additional €195bn in writedowns and could weigh on banks' profitability.